THINGS YOU SHOULD KNOW

• It actually costs less to use the law firm of Bethune & Associates.  Our recoveries typically result in more net dollars being returned to our clients.  Our recovery percentages are typically higher than an agency.  This is a direct result of the impact of your debtor being contacted by a law firm at the beginning of the process when fees are lower.  If the impact of being contacted directly by a law firm does not make a difference, then why do so many agencies names mimic the names of law firms?  That is where any similarity ends.
  
  
• Four out of every ten accounts you send to a collection agency have no chance of being collected by them.  This statement is based upon responses provided by the agencies themselves to surveys conducted by the Commercial Law League of America.  (See their January/February 2005 "Debt³" Magazine, page 14.)  This means they only have a chance to collect six out of ten accounts.  Maybe that is why their recoveries are so low.
  
  
• Whose numbers do you believe?  If you do not track your accounts by both the total number of accounts placed along with the total dollar value of each, you will not be able to assess the productivity of your collection vendor.  We have spoken with companies whose agencies refuse to provide full reports detailing when an account was placed, the age of the account at the time of the report, and, a full analysis of the work performed to recover your money.  All dollars need to be counted.
  
  
• When is the last time your collection manager made any changes to the vendors that are used to recover your lost dollars?  Has your collection manager ever implemented a challenge system by bringing in a new collection vendor to compete against the existing vendor?  This allows the least performing vendor to be replaced by higher performing vendors.  Most companies are very concerned about the cost of services, supplies, and wages that it incurs in the operation of its business.  However, this concern seems to vanish when it comes to its collection department.  For some reason, these departments are given a pass when it comes to accountability and increasing productivity.
  
  
• If you ask your collection manager how things are going, and the reply is "Fine" you need to start digging and looking at how that department rates its vendors.  Change requires time and effort.  When a system is in place that seems to be running fine, any effort to implement change will cause people to move from their comfort zone.  This change could very well lead to significant increases in the net dollars returned to your profit line.
  
  
• Does your current collection vendor even understand your paper?  Have you taken the time to visit your vendor and speak to the people who are working your accounts?  If you do, you will more than likely be surprised that often times the collector does not even have a copy of your file in front of them.  More than likely, they are sitting at a work station reading a screen.  This prevents them from addressing any objections raised by the customer as to why they have not paid the money owed.  It prevents an intelligent discussion dealing with the issues given by the customer as to why they did not pay, and, it prevents a quick resolution to the matter.  The ability to intelligently discuss your collection accounts with your customers is what significantly reduces the need for our clients to have to appear at trials or other court proceedings.  The result of this is the return of your money in a more timely fashion.